Name: / Date:

Corporate Financial Condition Challenge– Part I

You are working for your favorite publicly traded company, ______, and you are up for a big job promotion! Your interview will be on ______. Part of the interview will be to see how well your team can interpret and illustrate the financial position of this company.

Using your company’s annual report from 3 years ago, create a presentation that addresses each of the product standards listed on this challenge.

  1. Essential Knowledge/Question:

How well can your team interpret and illustrate the financial information found on your company’s annual report?
  1. Process Standards (Skills or Disposition): Communication

A high quality process would exist by students who…
/ 4 3 2 1
communicated effectively by…
Interpreting information

Georgia CTAE Resource Network Unit Plan ResourceUnit PAI-4 Financial Statements• Page 1 of 2

  1. Product Criteria (Rule, Form, & Content):

Row # / A quality financial analysis would be developed by students who... / 4 3 2 1
1 /

acquire, organize, and communicate information by

Creating a 3-column table that includes the following column heading. Save your table using the filename Corporate Financial Condition
The question
The answer
Page the answer was found
Typing the following questions and answers into the appropriate column on the table you just created
What are the primary products/services of yourcompany?
More than one year’s amounts are reported in the statements. Such statements are called “comparative statements.” How are the amounts presentedon both the balance sheet and the income statement foryour company’s financial statements…to the nearest thousand, to the nearest million?
What is the basic purpose of reporting incomeon the financial statements in terms of use for investing and tax implications?
Thebalance sheet shows what the company owns, what they owe, and what money the owners have invested in the company. What is the amount for total assets, total liabilities, and total stockholder’s equity? (list each amount on a separate row in your table).
The income statement shows the financial progress of the company for a specific period of time (the fiscal period). What is the amount for sales and expenses? (list each amount on a separate row in your table).
The cost of what a company owns is deducted through depreciation expense. What is the amount of depreciation expense for your company?
The Statement of StockholdersEquity shows the different types of ownership present in the company. Examples:
Common stockholders doesn’t provide guaranteed dividends each year, but is generally entitled a vote in major company decisions. This type of stock gets paid in the event of liquidation after creditors and preferred stock owners.
Preferred stockholders get paid dividends before common stockholders, but don’t always have a vote in major company decisions. This type of stockholder has a right to be paid back for the investment in the stock after creditors, but before common stockholders. This type of stock will usually have a set dividend to be paid, where common stockholders have the opportunity to have a larger (or smaller) dividend from year to year.
Treasury Stock represents the company's common or preferred stock currently owned by the company itself, as a result of stock repurchase in the past.The amount of treasury stock is subtracted from stockholders' equity.
Retained Earnings represent the amount of the company's past net income retained inside the company (not paid as dividend to stockholders.)
What is the amount of common stock, preferred stock, treasury stock and retained earnings?

Georgia CTAE Resource Network Unit Plan ResourceUnit PAI-4 Financial Statements• Page 1 of 2